Construction Industry is one of the most booming industries in the whole world. The whole process of construction can be divided into various segments like
- Construction of buildings: Residential, industrial, commercial, and other buildings.
- Heavy and civil engineering construction: Building of sewers, roads, highways, bridges, tunnels, and other projects.
- Specialized activities like carpentry, painting, plumbing, and electrical work.
Infrastructure is a life breath of any nation as it provides strong base for the growth of others sectors of an economy. For building huge infrastructures, machineries both heavy and light are necessary. Construction machineries
like cranes, loaders, dumpers, excavators, mixers, crushers, etc. are serving the purpose very well.
Construction Industry Overview
All over the world, construction industry trends have shown a rise in its rate of growth. The different sections of the construction industry are showing differential growth pattern all over the world.
- Construction industry contributes a huge amount to the world GDP amounting to 1/10th of the same.
- Immense potential in generating huge amount of employment.
- Construction industry offers employment to around 7% of the total employed work force around the globe.
- The industry consumes around 2/5th of the total consumed energy through out the world making it the largest sector in respect of consumption of energy.
Resource utilization amounts to half of the total resource used all over the world.
Construction Industry is the base of the world economy and this is achieved through the construction of residential and commercial properties, bridges, tunnels, roads, railway tracks, airports, etc.
Construction Industry Trends
The trends of this industry can be stratified as per different countries and segments. For giving an overview of the construction industry trends, the best examples are USA and India.
In USA, heavy engineering construction sector has increased at the rate of 5.2%, residential real estate sector at the rate of 15% and and commercial residential sector at 7.5% in the financial year 2005. But this upward trend lost its shine in the years 2006 and 2007, especially in the residential real estate sector. This was evident from the fact that there was a fall in the sales of the homes.
On the other hand, India is seeing a boom in the construction sector. This is due to government initiative in developmental facilities expansion. Economic upsurge has also generated enhanced demand generation in the real estate sector. Construction Industry in India is rising at a phenomenal rate of 7 to 8% p.a.
Construction Industry Analysis: Prospects
The prospects attached with the industry of construction machineries has attracted the attention of many global manufacturers and exporters. In recent years Indian producers of both heavy and light machines have performed very well both in the domestic and the world market. The reforms of the government and the trade pact with the neighboring countries have also contributed to the growth of Indian construction machinery industry to a larger extent. With the continuation of the development process especially in the developing countries, construction Industry is indeed a growing industry. With the process of development, the migration of people takes place from the rural to urban areas. This is most significantly observed in the "Asian Tiger" countries, Indian and China . Thus, the Construction Industry is also on a rise in such countries.
Be it a large, small or medium construction firm, everyone is striving for modern technology. The most significant aspect associated with the industry is increased use of the latest technologies for pacing up the work. The construction workplace is no more a labor intensive dull setting. With the importance given on security and infrastructure, overseas job prospects in this industry are increasing day by day. Cutting edge technology is being adopted by world's biggest industries for leveraging purposes and is mainly being used in raising the efficiency level of engineering and designing of construction industry.
Global demand to rise 6% annually through 2011
Global demand for construction machinery is forecast to rise 6% per year to $130 billion in 2011. Product sales will be increased by healthy economic growth, continuing industrialization efforts, rising population and higher standards of living in developing parts of the world, leading to substantial increases in construction spending. China, India, Mexico and Russia will register some of the largest sales increases, with China alone accounting for 31 percent of all additional construction machinery demand through 2011. Growth is also expected to be strong in Iran, Malaysia, Indonesia, Ukraine, Turkey, Poland and South Africa.